US feeder cattle headed for worst month since 2003
US
feeder cattle futures were headed for their biggest monthly decline in nearly a
decade on July 31 as record-high corn futures limited the amount of money feedlot
managers would pay for replacement cattle. Feeder cattle futures were on pace
to decline more than 8% for the month; the poorest performance since December
2003, when futures plunged more than 20%.
The worst
US drought in five decades has devastated the developing corn and soybean crops
and propelled prices of each commodity to record highs, pushing many livestock operations
into the red.
Producers
of beef, pork, chicken and turkey appealed to the Environmental Protection
Agency on July 30 to waive its Renewable Fuels Standard, which earmarks around
one-third of the total corn crop for ethanol production.
